If inflation is growing and interest rates are decreasing, what will happen to bond prices? and Bond and Hale Houses in Keene New Hampshire

If inflation is growing and interest rates are decreasing, what will happen to bond prices?

This seems to be the current situation; usually interest rates go up with inflation (which would make bond prices go down), but now we have substantial inflation, and interest rates are heading south. Help! Are bonds safe?


Bond best answer:

Answer by dm_dragons
Bonds are "safe" in that they are owed to you legally. You aren't buying stock that might not be worth anything, you are actually giving a loan that must be paid back. As long as the company or government survives, you'll get your "loan" back with a bond.

As far as bonds value to you as for the yield - they tend to make money when the stock market drops. So you should have a portion of your portfolio in bonds to offset bad stock years.

Bond

Bond and Hale Houses in Keene New Hampshire


Image by Keene and Cheshire County (NH) Historical Photos
TITLE
Bond and Hale Houses in Keene New Hampshire

CREATOR
Wardwell, Anne, Keene NH

SUBJECT
Buildings - NH - Keene
Houses - NH - Keene

DESCRIPTION
"The Bond House, on the left, was built in 1805 and is stylistically similar to the Blake House we have just seen. The decorative details of this house, however, are Italianate, a style popular in the 1840-60s, and it was during these years that its neighbor, the Hale House, was constructed."

PUBLISHER
Keene Public Library and the Historical Society of Cheshire County

DATE DIGITAL
20090129

DATE ORIGINAL
1975

RESOURCE TYPE
slides

FORMAT
image/jpg

RESOURCE IDENTIFIER
hsykfok035

RIGHTS MANAGMENT
No known copyright restrictions.

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